As competitive advantage example is brand loyalty. A power of brand and consumers loyalty protect business from competitors. In previous videos on this channel we thoroughly reviewed the sequence of actions of all successful investors.I will focus your attention once again on the fact that only amateurs are trying to predict what stock prices or marketable asset prices will be tomorrow or next week.
All successful investors are looking for businesses with a long-term sustainable #competitiveadvantage. We know that in the role of such an advantage there can be a unique technology, the intellect of talented employees, big capital, personal relationships of managers.
In previous videos on this channel we thoroughly reviewed the sequence of actions of all successful investors.I will focus your attention once again on the fact that only amateurs are trying to predict what stock prices or marketable asset prices will be tomorrow or next week.
All successful investors are looking for businesses with a long-term sustainable competitive advantage. We know that in the role of such an advantage there can be a unique technology, the intellect of talented employees, big capital, personal relationships of managers.
But there is one kind of competitive advantage which, by its significance and power, exceeds all other things. This is a product brand and brand loyalty. As example look at Warren Buffett businesses portfolio.
Why a well-known brand is the most desirable form of competitive advantage?
Because a brand cannot be quickly created by competitors.
#Brandloyalty maintains a constant demand for products and services in the market.
Consumers addiction to a particular brand allows its owner to raise prices without reducing of demand.
Brand loyal consumers are the best kind of advertising. And it’s cheapest way to advertise products and services.
Brand loyalty is not possible to copy by competitors.
Thus the presence of well-known brand products in the company equals the predictability of future cash flows and profitability of business.
Perhaps you thought how understanding this information will help you to achieve your financial goals. Everything is very simple. Today I’d like to share two wonderful sources of information absolutely free of charge.
First is web site
Here you can find many valuable investment ideas among regional and global brands.
Second website is
One of the most important indicator of brand loyalty is a consumer satisfaction index. This index is published at this website annually. Here you can see all competitors and their satisfaction indexes inside every industry.
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